A monthly report to members from AMT - The Association For Manufacturing Technology

A closer look: tax
proposals come to
the table
Since the
election, there has
been increased
commentary on the
prospects for comprehensive tax reform in
the 115th Congress.
The election of
President Trump and
a Republican majority
Amber Thomas
V.P. - Marketing &
in Congress represent
Communications
the first real opportunity for comprehensive tax reform in 30
years, but dissent within the party and a
full agenda may doom the effort.
Much of the groundwork on the House
proposal is done. The House Ways & Means
committee, led by Chairman Kevin Brady
(R-TX), spent the last two years researching, holding hearings, and soliciting
comments for a blueprint that is now part
of the House Republican “A Better Way”
agenda introduced by House Speaker Paul

Every spring AMT members and
industry leaders gather at the MFG
Meeting to discuss the forces transforming
the manufacturing industry and strategies
to lead a successful manufacturing
business.
Hosted by AMT and the National
Tooling and Machining Association
(NTMA), this year’s MFG Meeting, will be
held March 22-25, 2017, at the Omni Amelia
Island Plantation in Amelia Island, Fla. The
MFG Meeting provides the opportunity for

executives from every step in the manufacturing chain to network and attend
conference sessions that focus on technology, industry economics, market trends,
workforce development and business
leadership.
Keeping informed on the latest
technology is crucial to maintain a
manufacturing company’s competitiveness, especially in an evolving manufacturing industry. Tech-focused agenda highlights include:
• Additive’s Future in Manufacturing by
Kirk Rogers, technology leader at GE’s

Center for Additive Technology Advancement. Rogers will discuss how additive is
changing the economics of manufacturing, offer ways manufacturers can start
their AM journey, and share how GE is
pushing the limits of additive in part
production at its new $39-million
flagship additive technology center
located in Pittsburgh, Pa.
• Innovation & the Future of Manufacturing by New York Times Bestselling Author Josh Linkner. As a tech

The MFG Meeting

See Page 4

Page 2

Tax reform

Cont’d from page 1
Ryan (R-WI) last Congress. Ryan,
who chaired Ways & Means
before Brady, played a major role
in the reform plan.
President Trump is expected
to send his plan to Congress for
consideration, but few details are
currently available. The president
has voiced conflicting messages
on his support for major provisions of the House plan. Senate
leaders, led by the Finance
Committee Chairman, have
raised their own concerns with
the plan and are considering
drafting their own proposal.
These differences must be
resolved to move forward.
Here are the details we have
now:
Rates: It’s widely known that the
United States has the highest
corporate tax rate in the
industrialized world, and the
third highest in the entire world.
A major goal of every tax reform
proposal is lower rates. The
House blueprint would reduce
the federal corporate rate to 20
percent. It would also create a

AMT NEWS/February 2017
new 25 percent maximum rate
for pass-through entities.
President Trump would lower
taxes to 15 percent to all
businesses. It’s unclear if
businesses would be required to
incorporate to be eligible for the
lower 15 percent rate.
AMT & Death Tax: The corporate
alternative minimum tax and
estate tax would be repealed.
Expensing: Under the blueprint,
the cost of capital investment
would be fully and immediately
expensed rather than depreciated over time. It would be
automatic and available for all
business investment (including
buildings, tangible and intangible assets). The intent is to
move away from an incomebased system to one based on
consumption.
Tax Credits and Deductions:
With the exception of the R&D
tax credit, just about every
deduction and tax credit would
be repealed. That includes the
deduction on interest as a
business expense.
Repatriation: Currently, the
United States is the only country
among the G-7 nations that has a
worldwide system of taxation.
Under a worldwide system, a
corporation headquartered in
the United States pays taxes on
all its income, regardless of
where it’s earned. The foreign
earnings are taxed when they are
“repatriated” by bringing the
income back to the U.S. Under a
territorial system, the United
States would tax U.S. income and
would exempt foreign income.
This would allow U.S. companies
to play on a more level playing
field.
The House plan would adopt a
territorial system by first levying
an immediate 8.75 percent on
existing offshore earnings held in
cash/cash equivalents and taxing

other earnings at 3.5 percent,
both payable over eight years.
From then on, there would be a
100 percent exemption on
earning from foreign subsidiaries. The president has said he
would impose a one-time
repatriation tax of 10 percent
payable over 10 years and keep
the worldwide system of
taxation.
Border Adjustment: The border
adjustment included in the
House plan is causing the most
contention. The blueprint would
apply a border adjustment that
would rebate tax on U.S. exports
and tax imports, converting the
current business income tax to a
destination-based cash flow tax.
The adjustment is intended to be
consistent with the border
adjustments applied by other
countries. The president has
made conflicting statements on
border adjustability so it remains
to be seen if an adjustment is
included in the proposal he
sends to Congress. Meanwhile,
some in the Senate leadership
have voiced their opposition to
the border adjustment. Right
now, however, no formal
proposal has been introduced in
the Senate.
Elimination of the border
adjustment is a non-starter in
the House. Without it, lawmakers have no obvious way to pay
for the business tax rate
reductions.
Next steps: House tax writers are
requesting input from stakeholders. Your participation in the
process is essential to making
Congress aware of the varying
impacts on companies in
different parts of the manufacturing supply chain.
Contact the Ways & Means
Committee at https://waysandmeans.house.gov/blueprintfeedback/ to get involved.

MFG Advocate …

So, what do I post? A social
media content primer
By Penny Brown, Director
AMT Marketing & Communications

So your business is getting
started on social media. That’s
great! Welcome to your digital
marketing journey. But once you
get your accounts up and running, what types of content
should you look to post? Here is a
quick primer on channels and
how to approach them.

Facebook
Getting started:
First, before you create
your page, take the time to gather
some good content. That means
photos of your shop and staff
(consider hiring a pro to take
some) and writing some basic
content – a brief “about” statement
that describes your company, a
calendar of company events, and
videos. Try to include an image
with every post you create, which
increases the likelihood that
someone will click on it.
Put some thought into a basic
timeline for making posts. The
beauty of Facebook business pages
is that you can create and schedule
posts in advance, meaning it’s easy
to sit down and create a week’s
worth of posts at one time. You can
assign user roles to a variety of
people at different tiers of access
for your page – meaning it’s easy to
get several people involved.
Remember, Facebook doesn’t
post things chronologically, and
just because someone likes your
page it doesn’t mean your posts are
going to show up in their feeds. For
business pages, it’s a pay-to-play
world (though you don’t have to
spend much to be successful).
Advanced: In recent times,
Facebook’s algorithm (which
determines what posts get in

front of how many eyes) has been
most friendly to video, especially
video that users upload natively
to Facebook (vs. linking to it from
another site). That’s because
Facebook wants to compete with
YouTube as the internet’s video
upload platform of choice. And
that’s doubly true of the new
Facebook Live feature, which is
almost guaranteed to get you at
the top of your followers’ feeds.

Twitter
Getting started:
The primary complaint about
Twitter is that its real-time feed is
overwhelming and difficult to
follow. I’d challenge you to
instead think of Twitter as the
world’s biggest 24/7 networking
party. Use it as an engagement
platform – a place to reach out to
your customers, partners, and
journalists, and even your elected
officials. Finding, following, and
tagging these people in your posts
will help you connect with them.
The Twitter feed also loves
videos and images. Adding a visual
element to your posts increases the
likelihood that they’ll get clicks.
Advanced: Journalists love to
use Twitter to find sources for their
stories. You can leverage this as a
way to get coverage for your
company. Find reporters who cover
topics relevant to your business and
tweet to them directly with your
company news, or offer to act as a
source on their future stories. Local,
state and federal government
officials and agencies can also be
reached in the same manner.

LinkedIn
Getting started: It’s easy
enough to duplicate or slightly

MFG Advocate See Page 3

Border adjustability and territoriality level the global playing field
By Pat McGibbon
VP - Strategic Analytics

The goal of the House Republican tax plan is a simpler, fairer and
flatter tax code that strengthens
American competitiveness rather
than hinders it. On the business side,
that means leveling the playing field
for U.S. products by lowering rates,
encouraging investment and
moving to a territorial, international tax system like most of our
foreign competitors.
A majority of our trading
partners tax economic activity
where it is consumed or purchased. Exports, and the revenue
they generate, are not taxed in the
country of origin but in the

country where they are bought. In
the U.S., however, revenue is taxed
here (as the country of origin) and
also abroad where the product is
bought. When the profits from the
export sales are brought back to
the United States, they are subject
to tax again. The House plan
would level the playing field for
U.S. manufacturers by moving the
United States toward a territorial
tax system similar to that of our
trading partners and by lowering
the corporate rate to 20 percent
(down from 35 percent) to be
competitive to the rest of the
world. Border adjustability is
an essential element of a more
equitable global business environ-

ment for U.S. companies.
As an example, let’s compare
two identical products – one from a
U.S.-based manufacturing technology builder and the other from a
foreign country with a 20 percent
business tax rate. Other factors are
equal, including cost structure,
margin, importer of record, units
sold domestically and units
exported. Based on AMT’s analysis,
under current law, U.S.-based
manufacturers’ profits are about 70
percent of their foreign counterparts and their global tax liability is
three to four times more.
The House blueprint levels
the playing field for these two
competitors yielding the same

profit levels and tax liabilities in
both instances. How?
1. The blueprint will lower the
corporate rate to 20 percent
(two points lower than the
world average).
2. Exports and export revenue
will not be taxed (same rules as
our international competitors).
3. Imports will be taxed as revenue in the United States ( as
U.S. products are treated in destination countries).
4. Importers of record will collect
the revenue for selling their
product in the United States
and therefore pay the tax – not

It’s true that AMT’s members
are connected by their engagement
with the manufacturing technology
sector. However, there is quite a bit
of diversity when you look more
closely at our membership profile.
AMT’s membership is made up of
manufacturers who represent a
variety of distinct product areas.
In addition, our distributor
members cover clear territories of
the country and specialize in
offering unique technology
solutions and services to a number
of different customer industries.
AMT is able to deliver
tailored business information
either through ad-hoc custom
research or through members’ use
of our business intelligence
platform. In fact, the business
intelligence platform found at
MTInsight.org helps to extend
our custom research resources by
automating report generation and
delivery for the data most
commonly requested. However,
even with a platform that’s
automated to give regular
updates on new information, we
recognized what users needed
was to be able to customize the
contents and shape of that data to
suit their unique requirements.

the show will change on a daily
basis. This gives the Passport user
a very useful tool to easily
generate new lists with this same
set of criteria for continuous
updates to marketing efforts.
Figure 2 illustrates an
example of how the saved
scenario feature is used within
the USMTO app. The tool is able to
summarize many product
categories and rename them by
size of the major product type so
that the user can easily analyze
reports by large or small VMCs.
From that, you can imagine the
ability to build dozens of specific
market reports covering varying

combinations of machine
categories, geographic regions
(including custom defined
territories) or time frames.
The saved scenario feature
and its associated custom report
building capabilities is one way
AMT can extend its resources to
satisfy a wide range of needs for
our members.
Feel free to contact Jackie McFarland at 703-827-5206 or jmcfarland@AMTonline.org or Asim
Mukhtar at 703-827-5244 or
amukhtar@AMTonline.org if you
have questions about the platform
applications or need access to
MTInsight.org.

modify your Facebook posts to
use on LinkedIn, though be
mindful of
making your
LinkedIn posts businesslike and
relevant to a professional audience. While Facebook is a good
place to have some fun, LinkedIn
posts should always wear a
proverbial shirt and tie, or at least a
golf shirt and khakis. Keep it
polished and stick to topics you’d

There was a lot to like from our recent Winter
Economic Update Webinar at the end of January.
Not only did Oxford’s Mark Killion do an outstanding job updating participants on the impact
of a Trump presidency, but AMT staff also gave
short briefings on your association’s advancement
Pat McGibbon
in expanding market access opportunities, indusV.P. - Strategic Analytics
try intelligence assets and technology trends tools.
I had the opportunity to share how AMT has built a deeper pool of
industry intelligence assets and is working to create a manufacturingfriendly environment for building, selling and servicing.

Expanding Market Data

In 2016, the two associations took the collaboration one step further by
jointly commissioning IHS, a global player in economic consulting, to
produce a quarterly forecast on the cutting tool market. The first iteration of that forecast was presented at IMTS and the first publication of
the results was in December. It has been widely praised by its audience
– cutting tool producers in either association who contribute to the
Cutting Tool Market Report.
In 2007, AMT provided the initial funding for a global forecast of the
machine tool market covering 20 countries and the six top industrial
markets. The next year, CECIMO – representing the European machine
tool associations and the MTA in the UK, the Indian Machine Tool Manufacturers’ Association, and the Australian Manufacturing Technology
Institute Limited joined with AMT to fund the production of this forecast
twice a year and pledged to work toward increasing participation in the
program. During 2016, this collaboration expanded to include China and
Taiwan and expects to add South Korea in early 2017. These three countries will be contributing information on what currently amounts to
nearly 50 percent of the world market for machine tool products, increasing the accuracy and fidelity of the global forecast tremendously.

As a result, several apps on
the platform include a feature
that gives users the ability to
select and save criteria that can
be easily recalled whenever new
results are available. For example,
Figure 1 shows a user who has
saved a set of criteria in the IMTS
Exhibitor Passport app: IMTS
2016 attendees who are interested
in VMCs, who are from the user’s
northeast territory, and who do
business in the aerospace
industry. For pre-show marketing,
the number of registrants who
match this criteria leading up to

Cont’d from page 2

Industry intelligence goes
deep, deep deeper

During 2016, AMT expanded its relationships with other organizations
to increase access to timely, detailed data on our markets. The expansion has led to deeper dives into the analysis of what is going on in your
business and the wider manufacturing technology market. In 2013,
AMT and the United States Cutting Tool Institute began a collaborative
effort to provide better detail on the market for cutting tools by merging our market data surveys. This created a 33 percent increase in market coverage for the combined programs.

BI platform “saved scenarios”
feature

MFG Advocate

Market
Data
Review

discuss if you were attending a
professional networking event.
Like other platforms, using a
visual element, like a photo or a
graphic, increases the likelihood
that your posts will get clicked.
Advanced: Through its
publishing platform, LinkedIn is a
fantastic place to show your
company’s expertise. Long-form
articles written by members of
your company’s staff and then
shared within relevant groups on
LinkedIn can draw attention and
increase engagement. (And while
there are many groups that focus

on manufacturing, I suggest you
start with sharing your posts in
AMT’s!)
Social media is a must-have
for any marketer – a great way to
connect with your partners and
clients, while also giving your
company a more human voice and
digital presence. When it comes
to marketing, it is no longer an
option. Your audience is there,
and it’s growing every day.
Want more social media tips? Have
a success story to share about how
social has worked for you? Drop me
a line at pbrown@AMTonline.org.

Over the past year, recruiting initiatives and collaborations with other
organizations have helped improve the USMTO program. Additionally,
the Advanced Workholding Technology market report was rewritten
from scratch in 2016 and launches with the first report in 2017 on January 2017 data. In 2016, Strategic Analytics began providing in-depth
market studies on a limited basis as constrained by resources. The first
iterations received rave reviews on the quality, thoroughness and value.
AMT staff looked at the underlying market share issues on a member's
brand then interviewed hundreds of customers and potential customers, as well as the brand’s distribution chain, creating an in-depth
report identifying issues and suggesting solutions.
While the in-depth studies come with a price, AMT provided custom
research for nearly a thousand research requests in 2016 at no cost.
These are just the highlights as to how AMT staff – your virtual staff
– increased the depth of their understanding and offerings on the manufacturing technology market.
Participation in the market surveys is open, at no charge, to members
and non-members alike. Access to the cutting tool forecast requires
that you are a member participating in the CTMR. Access to the global
Oxford forecast by country and industry is available to those companies
that subscribe to the Global Forecasting and Marketing Package, as
well as those who attended the 2016 Global Forecasting & Marketing
Conference. AMT provides up to four hours of complimentary custom
research to members, with additional time billed at $100/hour.

Please call 888-379-4659 for meetings information. Call 800-524-0475 for information on international events.

The MFG Meeting
Cont’d from page 1

entrepreneur and investor in
dozens of startups, Josh opens
the conference with his keynote
address on practical tools and a
systematic process that
manufacturers can easily
implement to increase innovation and deliver bottom-line
results.
• Fast-Forward Future: The
Competitive Technologies
You Need to Know by AMT
President Doug Woods. A
lifelong and forward-thinking
manufacturer, he will present
an overview of the latest
competitive technologies
transforming manufacturing.
Presentations on the economy and market trends include:
• Contract Machine Shop
Market & Oil Industry by
Harbour Results President
Laurie Harbour. She will shed
light on how contract machining and additive manufacturing
may influence future business
models, as well as the current
state and future forecast of the
oil and gas industry.
• Economic Outlook by Oxford
Economics Founder John
Walker. A leader on major
projects with government

departments and multinational
companies from Europe and the
United States, John will take a
close look into economic
forecasts to help attendees
gauge the market and hone their
business strategic plan and
sales projections.
Back by
popular
demand, the
MFG Talks offer
inspiring
15-minute
messages from
AMT and NTMA members
including Jim Carr, owner and
president, Carr Machine & Tool,
Inc. and cohost of Making Chips,
a podcast for manufacturing
leaders.
The closing keynote presentation, Live in Vision Not in
Circumstance, is sure to leave
attendees feeling inspired as Jon
Dorenbos, NFL Philadelphia
Eagles long snapper and TV
personality, shares his insight on
ways to strengthen leadership
style and business.

Events beyond MFG
While attendees are being
inspired, their travel companions
can take part in Lifestyle Reporter
Anna De Souza’s program: What’s
Trending in Beauty, Fitness
Nutrition & Skincare.

Remember to bring sneakers
to run or walk in the Miles 4
Manufacturing (M4M) 5K race,
which donates all proceeds to
programs promoting careers in
manufacturing. Taking place
Thursday, March 23, at 6:15 a.m.,
the M4M is a great way to enjoy
the island
landscape and
pump some
energy into
your day before
the MFG
Meeting
sessions begin. (For more details,
see the article on page 7.)
Of course, the MFG Meeting
offers plenty of networking
opportunities including breakfasts, receptions, dinners, a golf
outing on the award-winning
Ocean Links course, and a dinner
dance on Saturday night. There is
ample time to reconnect with
colleagues and make new
introductions to potential
partners and clients.
Many of the networking
events at the MFG Meeting are
supported by our sponsors:
Gardner/MMS, Kennametal, SME,
Festo, BIG KAISER Precision
Tooling, Inc., Royal Products, alliantgroup LP, GIE Media, Makino,
Erowa, and Okuma.
Don’t delay! Register today at
www.theMFGmeeting.com.

Cont’d from Page 3

In addition to providing you a deeper dive on your markets, the staff at
AMT is expanding the intelligence on your customers as well. Global Services staff in Mexico, Brazil, China and India provided members one-onone consulting on their respective country’s markets for your products
and personally obtained information on business opportunities, including introductions to customers in many cases. This is just one of many a
la carte services that Global Services provides in-country for members.
All of this means that AMT can provide members information on when
and where new plants will be built, the investment level, the purpose of
investment and who will be making the investment.
AMT participates in councils with representatives from companies such as
Ford, Joy, Caterpillar, Rockwell International and many additional mid-size
and small companies. These efforts help to develop trade policy, create
awareness of key business challenges and make policy-setting agencies
aware of the needs facing different sectors of manufacturing. These relationships also help create an understanding of these customers’ future manufacturing technology needs, how those customers utilize trade shows and what
resources they rely on in making capital equipment decisions. The in-depth
market studies and surveys we have conducted for other organizations have
increased our contact with the customer base, building a population of individuals we can call on to add depth to our knowledge of customer actions
and motivations. Our collaboration with other organizations and custom
research has helped AMT staff to develop an extensive set of processes for
creating customer and competitor profiles – most at no cost.
As we move further into 2017, I encourage you to take advantage of the
resources that are available to all members of AMT. If you have any questions about the opportunities or want more details about any of our services,
don’t hesitate to call or email Pat McGibbon at 703-827-5255 and at pmcgibbon@AMTonline.org or Kim Brown at 703-827-5223 and at kbrown@
AMTonline.org.

Foreign Trade Report – November 2016
U.S. machine tool exports valued $145.26 million in November, down 22.9
percent from October’s total of $188.35 million. Exports for year-to-date
2016 totaled $1,844.97 million, a decrease of 14.0 percent when compared
to the same period for 2015. Monthly machine tool imports valued
$387.86 million in November, down 1.3 percent from October’s total of
$393.07 million. Imports for year-to-date 2016 totaled $4,340.45 million, a
decrease of 1.3 percent when compared to the same period for 2015.
Mexico was the leading destination for U.S. machine tool exports in
November with $36.90 million, a 31.4 percent decrease from October. The
second largest destination for U.S. machine tool exports was China, with
$14.70 million, a 39.3 percent decrease from October. Completing the top
five destinations for U.S. machine tool exports were Canada ($14.26 million), Germany ($12.69 million) and Taiwan ($3.98 million).
Japan ($121.22 million) and Germany ($42.58 million) were the top suppliers of U.S. machine tool imports for November 2016. Compared to October’s figures, Japanese imports decreased by 12.0 percent and German
imports decreased by 37.0 percent. Completing the top five sources of U.S.
machine tool imports in November were Italy ($32.32 million), Taiwan
($31.34 million) and South Korea ($24.72 million).
For more information about any aspect of this report or to make a specific data
request, contact Juan Guerra at jguerra@AMTonline.org or 703-827-5278.

Tax code

Cont’d from page 2
U.S. consumers, distribution
houses, etc.
5. The market is too competitive
for foreign companies to pass
the entire tax increase downstream to the distributor or
consumer.
6. Changes in exchange rates will
help to mitigate the impact as
the dollar gets stronger, reducing the cost of imports.
AMT is working to develop
tools to explain these changes in a
dynamic fashion. Transactional

depictions miss the elimination of
the import subsidies that the U.S.
government created when it did
not move to a border adjustable,
territorial system when the rest of
the world made that move.
I’d like to know your thoughts on
this proposal. Members from different parts in the supply chain will be
impacted differently. How do you
see your company being affected?
Write me with questions and comments at pmcgibbon@AMTonline.org. If you have questions
about the legislative process, contact Amber Thomas at athomas@
AMTonline.org.

The MTConnect standard is
helping enable next-generation
manufacturing by allowing
communication between different
types and brands of devices on the
factory floor. Getting started with
MTConnect requires little more
than a survey of a facility’s capabilities, an assessment of needs, and an
evaluation of current and nearfuture vendor solutions available.
Machine tool builders and
distributors are increasingly fielding
customer requests for digital
manufacturing applications like
factory monitoring, predictive or
condition-based maintenance,
remote access or control, and more.
Some customers specifically request
MTConnect. A basic understanding
of the standard, its capabilities and
limitations, how it works with other
technologies, and its development
requirements makes for higher
customer satisfaction and better
sales performance.

Monitoring
Factory or machine monitoring is the most common use case

Common use cases for MTConnect
for MTConnect today. Machines
that support the MTConnect
standard enable a wide range of
software applications for realtime or historic status reporting.
The most basic and most common
function is automatically reporting utilization. Utilization is
“green light” time, or a measure of
machine uptime. More sophisticated applications offer downtime
analysis. Using MTConnect data
on its own, or using it in combination with operator input, downtime analysis adds a layer of
explanation for different categories of downtime. The categories
of downtime vary from company
to company, but generally include
things like scheduled maintenance, unscheduled maintenance,
waiting for material, waiting for
tooling, etc.

Overall Equipment
Effectiveness
Most factory monitoring
suites also show a calculation for
Overall Equipment Effectiveness,
or OEE. This is a statistical
process control measure that
takes into account Availability,
Performance, and Quality.
MTConnect data from a machine
control can provide “Availability”
by automatically logging utilization. Performance uses a combi-

nation of data from a control and
from Engineering on how fast a
process runs vs. how fast it could
run. Quality depends on defect
data that usually comes from a
source other than the machine
control.

System control and
integration
MTConnect is also an
enabling technology for machine
or system control and integration.
Applications for controlling a
machine, robot, part loader, or
automated system can use
MTConnect to simplify communication between components. For
example, MTConnect is able to
pass information about current
states and statuses between
machines, reducing the complexity of communication between
devices or from devices to a cell
controller. This functionality,
known as “interfaces” within the
standard, has been implemented
in a test environment with robots
and is commercially available
today for some bar feeders.
Development is underway on
bringing interfaces to other
common machine accessories like
probes and on-machine gaging.

MTConnect

See Page 7

Meet Jackie McFarland, AMT Senior Industry Analyst
In her role as senior industry
analyst for AMT, Jackie McFarland is all about the data. But her
passion lies in helping AMT
member businesses thrive.
With nearly 10 years at AMT
(with a couple of years away at
Okuma), Jackie uses qualitative
and quantitative data analysis to
inform members about products,
processes and markets that can
enhance business productivity
gains. “In the past 10 years, we
have investigated many questions
for our members and have never
received the same question
twice,” Jackie said.
After graduating from
Frostburg State University with a
double major in economics and
international studies, Jackie
joined AMT’s Strategic Analytics
team, where she put her knowledge of economics, mathematics,
and keen attention to detail to
work. Five years ago, she relocated to Charlotte, N.C., where she
was able to transfer her skills to
work for AMT member company
Okuma as a market analyst
developing sales projections and
performance metrics. Within two
years, her family returned to the
Washington, D.C., metro region.

She then rejoined AMT with
greater insight into how members
needed and used data analytics to
make business decisions.
“Jackie was a wonderful
analyst before she joined Okuma,
but her experience working for a
member has provided her with an
understanding of members' needs
that you can't buy in the D.C.
area,” said Pat McGibbon, VP –
Strategic Analytics.
“I am motivated by the unique
needs of every member,” Jackie
said. “The variety of members’
questions keeps my job stimulating. I also appreciate that I am not

at my desk all the time. I love that
this position requires me to visit
members’ facilities, attend conferences, and join in industry events.”
Looking ahead, Jackie wants
to take the AMT Strategic
Analytics team to the next level to
be an even better source of
information for AMT members.
She would like to use and consolidate more data to create apps that
will produce actionable items for
members. To get there, Jackie is
pursuing a master of science
degree in predictive analytics.
When Jackie isn’t exploring
facts and figures, she’s exploring
the great outdoors or traveling.
On a recent trip to Greece she was
thinking of advanced technology
as she toured the country’s
2,500-year-old archeology ruins.
Awed by their impressive size and
beauty, she wondered about the
technology employed by the
ancient Greeks. For her next trip
she’d like to visit Cuba and get a
closer look at the impact of having
a somewhat closed economy.
To find out how Jackie and the Strategic Analytics team can help your
business thrive, give her a call at
703-827-5206 or email her at JMcFarland@AMTonline.org.

Kitagawa North-Tech, Inc. has named Kevin Bennett as Vice President
of Sales and Marketing. In his new post, he will be spearheading sales and
marketing endeavors for North America and involved with the operational aspects associated with how the company brings new workholding
products and services to the market, responding to customer needs and
enhancing the customer experience.
LVD Strippit announces the
opening of its Southeast Support Center located in Charlotte, N.C., and its Southwest
Support Center in Dallas,
Texas. The two new regional
facilities are dedicated to
improved customer care at the
local level. They join the company’s Midwest Support Center
opened in 2016 and its Northeast Support Center located at
LVD Strippit headquarters in
New York.

John B. Hoy II

LVD Strippit announces the opening of its
Southeast and Southwest Support Centers. The Southeast Support Center in
Charlotte, N.C. (pictured here), celebrated
its grand opening February 6-10 with a
week-long open house event.

MAPAL welcomes a new VP Sales and Marketing
for North America and a VP Business Development
for the United States & Canada. As the new Vice
President of Sales & Marketing for North America,
John B. Hoy II will be responsible for sales, team
leadership, strategic initiatives, driving revenue, as
well as general management
responsibilities.

MAPAL has promoted Deryl
Carter to Vice President of Business Development for
the United States & Canada. He will be responsible
for sales, market development, channel management, strategic initiatives and general management
responsibilities targeting customer accounts outside
of the automotive Big 3.

Deryl Carter
Master Chemical Corporation is pleased to announce that Michael A.
McHenry has joined the company as Chief Executive Officer. McHenry will provide leadership, technical expertise and strategic direction for Master
Chemical implementing both short- and long-range
programs that support organizational objectives,
leveraging Master Chemical’s existing strengths in
the specialty lubricants and
Michael A. McHenry
metalworking industry.

Master Chemical also announces that David A.
Barned has been appointed Global Vice President –
Operations & Supply Chain, and General Manager for
USA. In his new role, he will provide leadership, focus,
and strategic direction for the company’s global Operations & Supply Chain teams and will work to better
connect Master Chemical’s complete Supply Chain
from raw material supplier to end-user.

Industry News

David A. Barned

See Page 6

www.AMTonline.org/renewal

Page 6

AMT NEWS/February 2017

Industry News

Cont’d from Page 5

Mastercam is proud to sponsor the 2017
FIRST Robotics Competition (www.firstinspires.org) by granting use of the Mastercam
Educational Suite for the duration of the competition to teams in need of CAM software.
The FIRST (For Inspiration & Recognition of
Science & Technology) Robotics Competition is held yearly. High schoolaged teams the world over compete head to head on a special playing
field with robots they have designed,
built, and programmed.
Okuma America Corporation has
named Koma Precision as Partner
of the Year. Koma Precision received
the highest number of votes among
all 50 members of Partners in THINC
in the annual partner effectiveness
survey to earn the distinguished title.
Okuma distributors from North and
South America participated in the
survey rating Koma Precision on service responsiveness, sales support,
perceived value of products/services
and recommendations.
Third Wave Systems has received
the prestigious Tibbetts Award from
Barry Agosti (left), President,
the Small Business Administration
recognizing the company's successes Koma Precision Inc. with Jeff Estes
of Okuma.
implementing manufacturing technologies via the SBIR program. Third Wave Systems develops and sells
materials-based modeling software and services that dramatically
reduce costs of machined components, accelerate design
cycles and improve part quality. The software products are
used by the top aerospace,
automotive, medical and cutting tool companies.
QVI® (Quality Vision International) has announced a
Kerry Marusich (Left) Third Wave Sysseries of key appointments in
tems President and Mark Walsh, SBA
its Manufacturing, Operations
Associate Administrator
and Service organizations:
• Randy Weaver, CIO, assumes the additional position of Director of the
company’s Electronics Manufacturing group, which produces
proprietary electronic and embedded control systems used in QVI
metrology products.
• Wade Cook, PhD, Vice President of Optics Manufacturing, assumes
additional responsibilities as leader of the company’s Research &
Development team.
• William (Bill) Stickles is promoted to the position of Director of
Production with responsibility for all standard product assembly
operations at the QVI Hudson Avenue campus.
• Bob Scheidt assumes the position of President of Quality Vision
Services, the technical support, calibration and field service arm of
QVI.
• Keith Polidor, Vice President, is promoted to the position of Senior V.P.
and Chief Operating Officer, with responsibility for the company’s
worldwide Supply Chain, Manufacturing and Quality functions.
We want to hear from you! What’s happening at your company? When you
send out a press release (or just have some interesting news), please email
information to rsharpe@AMTonline.org. To add your news to AMTonline,
go to www.AMTonline.org/membercms.

Known alternately as the
fishbone, fish skeleton, herringbone,
cause and effect, and 5M, the
Ishikawa diagram is a dispersion
analysis that graphically displays
causes to a problem/effect. This tool
has been used since it became
popular in the 1960s. Similar to
other problem-solving tools, the
Ishikawa diagram will only aid in
the management and structure of
getting to the resolution. The
process of creating and maintaining
this tool is straightforward.
The fishbone diagram begins
with the problem statement (effect)
at the head. This is not the easiest
item to determine. The tools to
create a problem statement are 5
Whys and observational analyses.
The spines of the fishbone diagram
(causes) are then defined. This is
based on the application. Most
manufacturing problems are
grouped into the following categories: Man (people), Method (process), Machine (equipment),
Measurement, and Material.
Environment may be a factor in
some processes such as welding or
precision manufacturing. Details of
each cause are added. Brainstorming, then categorizing, aids in the
process.
The next step is to further
understand what can be controlled.
Noise is defined as a variable that

can’t be controlled. Control is a
variable that can be changed on
demand. The starting point for
further investigation is labeling
each cause as control or noise.
Causes can be investigated for in or
out specification during the
manufacturing process, or tested on
sample pieces and completed by
single elimination or a design of an
experiment if there is a risk of
interactions. Observational analysis
will help document the testing and
once the major contributors are
found, they can be changed and
controlled in the future.
This tool has several pros and
cons:

• Can be used in a variety of
scenarios
• Resolution of causes scales with
complexity

Cons
• Requires time
• May require more than one
person
• May require further
investigation
This tool can be used in a
variety of settings and scenarios.
These include sales and marketing, business organization, design
engineering, and personal
development. There are a variety
of aids for this tool:
• Juran’s Quality Handbook, page
551
• LucidChart Template: http://
bit.ly/2iUabVA
• Mindjet MindManager has an
embedded template
bmoses@AMTonline.org.

International Report…

How Brazil is handling crisis and
what to expect in 2017

Lately, Brazil has
public expenditures to the
been one of the most
past year’s budget (after
targeted discussion topics
inflation). This is natuin the concerns of
rally a very complex and
business and the econunpopular measure, and
omy. It is a fact that the
the effects are only
country has gone through
expected in the long term.
difficult times over the
The good news is that this
last three years, whether
measure has been
Achilles Arbex
due to corruption issues
progressing and has
General Manager
or a downturn in several
already made a positive
São Paulo Technology &
market segments. Now
impact on business and
Service Center
there is an invitation to
the economy, contradictfurther understand what measures
ing most skeptical economists and
were taken by agencies and
critics.
government to change the course of
It is true that the proposal for
the political and economic scenarlimiting public expenditures
ios, combined with a quick update
sounds too simple given the
on what is being done to improve
dimensions of the problem caused
three different fronts: fiscal
by years of running out of control.
adjustment, investment in infraWhat has often gone unreported is
that this proposal is valid for 20
structure and international trade.
years, which means a long-term
Front 1: Fiscal adjustment
commitment from government to
An official measure has been
getting things settled in Brazil,
taken to address the issue associwhich will positively contribute
ated with public debt: tightening
(even in low doses) to the turn-

around of Brazil’s economy.

Front 2: Investments in
infrastructure
The second front concerns
investment in infrastructure and its
role in the turnaround of the
economy. There is no other measure
with such power of change as
infrastructure. Consumption is
depressed by the downturn in
income combined with growth in
public debt and unemployment;
public expenditures are limited to
the fiscal adjustment mentioned at
Front 1. All these factors have
pushed government toward opening
infrastructure business through
concessions to private companies,
which directly increases consumption for things like heavy machinery,
trucks and other equipment.
Companies in this sector are
faced with making investments in
new equipment to supply this

Brazil

See Page 7

Page 7

February 2017/AMT NEWS

MTConnect

Cont’d from page 5
Future application areas
Future application areas for
MTConnect data include process
optimization and, eventually, fully
autonomous operation. Applying
machine learning and algorithms to
manufacturing processes holds
promise for the near future, but
most applications are still in the
R&D phase. One particularly
promising application area is
predictive or condition-based
maintenance. Most equipment
undergoes preventative maintenance on a predetermined schedule.
By applying machine learning
algorithms (which work similarly to
recommendation algorithms for
Netflix or Google’s targeted ads),
requests for maintenance can be
triggered based on actual conditions rather than a pre-ordained
schedule. This will save time and
money by avoiding unnecessary
maintenance and premature
breakdowns prior to a scheduled
maintenance interval.
Finally, MTConnect data has

Brazil

Cont’d from page 6
demand, concurrently pushing an
increase in international trade
(especially imports, as Brazilian
companies aren´t able to fully meet
technology demands). The manufacturing sector will for sure benefit
from this effect.
Besides stimulating consumption of value-added products,
infrastructure investment has also
been promoting increased competitiveness among the industrial base,
reducing the so-called “Custo
Brasil” and diminishing bottlenecks
in power supply, logistics and
manufacturing. As they envision a
plan for economic growth, the
Brazilian government has also put
together incentive packages for
private companies to invest, grow
and expand, which supports
economic turnaround.

Front 3: External sector
While forecasts published two

been experimentally used for
optimization, tuning, and real-time
feedback. Fine tuning a manufacturing process on the fly requires
input from sources including a
machine or control, sensors, tooling,
etc. For example, a vibration sensor
may be able to detect damaging
harmonics in a metal cutting
process and automatically adjust or
pulse cutting speeds to overcome
the harmonic resonance. MTConnect-enabled devices have more
data available as inputs to real-time
optimization software and control
systems. Real-world, commercial
applications are just starting to see
the light of day but are expected to
proliferate rapidly in the next 5 to 10
years.
As a data standard, application
areas for MTConnect are primarily
limited by customer needs and
vendor implementations. Making
data available in a non-proprietary,
open format is simply a pre-requisite
for next-generation manufacturing
solutions. The most exciting
applications of MTConnect aren’t
the ones that have already been
invented, but those that have yet to
even be imagined.
years ago indicated that external
factors like Brexit and terrorism
would cause market uncertainty,
central banks adopted expansionist attitudes. Monetary expansion,
low or negative interest rates all
over the world and the existence of
inexpensive assets in Brazil due to
the down economy have opened a
window of opportunity for new
investments.
To make a long story short:
Brazil is on the right track, showing
clear indications of growth. Many
manufacturing sectors have
already indicated increases in
production over the last three to
four months, as the positive
environment is contributing to a
business-oriented mindset.
Expectations are quite high and all
sectors are looking forward to
recording positive results in 2017!
For more information, please don´t
hesitate to contact Achilles Arbex,
General Manager for AMT Brazil
São Paulo Technology Center
(AArbex@amtbrasil.com).

To register for the run, select the M4M option when registering for the MFG Meeting,
www.MFGmeeting.com.
To be a sponsor for the M4M, contact Bill Herman at 703-827-5282 or bherman@AMTonline.org.
Follow Miles for Manufacturing on Facebook: www.facebook.com/miles4mfg/

Global Services

The results are in: The India
Trade Mission was a winner

We have written in
ence the culture, food, people, and
plant tours showed their
this column before about
the business landscape to undermanagement philosohow AMT trade missions
stand potential opportunities. The
phies in practice. At the
are an inexpensive and
industrial visits gave me a sense of
on-site wrap-up
effective way to learn
the current developmental state of
meetings, they asked us
firsthand about a
for recommendations for the end-user’s quest for increased
country’s culture and
productivity and quality.”
improvement. The
business practices, to
Gene Welti of Mastercam
companies we visited are
meet high-level executives
shared, “It is a big advantage to
looking for partners and
at local companies that
physically visit the local companies
we walked away with
Ed Christopher
would normally be out of
to see how they have their shops set
personal
contacts
for
the
V.P. - Global Services
your reach, and to gain
future,” commented Fred up, be exposed to the working
valuable business intelligence about Mason, Quality Vision International. conditions, and learn from highthe level of technology and prolevel executives what challenges
Tying the trade mission into
cesses used in order to develop a
they are facing. It is very eye
the AMT/USA Pavilion at the
sales strategy.
opening.”
IMTEX show had certain advanIndia has a $1.7 billion annual
“I would highly recommend
tages, said Dave Moskey of Mastermachine tool appetite with 60
other AMT members who want to
cam. “One of the large companies
percent of it being imported. GDP
increase their footprint in foreign
that we visited on the trade mission
growth in 2016 was 7.2 percent and
countries to participate in future
just stopped by our booth for a
they are expecting the same for 2017. demo. We’re very, very happy we
trade missions,” said Monte Dhatt of
The country is experiencing
Master Chemical.
participated.”
particularly strong growth in the
In addition to trade missions,
An AMT trade mission makes
aerospace, automotive, and power
AMT Tech Centers in India, China,
for great preliminary reconnaisgeneration sectors. Given all of this,
Mexico, Brazil, and Eastern Europe
sance for a country you are considit seemed judicious for Arun
offer a wealth of products and
ering in your growth strategy. Kim
Mahajan and his team at the
services to assist you in gaining a
Chia of Balance Technology noted
Chennai Tech Centre to organize a
foreign foothold. Let AMT’s global
that “my objective for joining the
trade mission in conjunction with
reach give you a local presence.
trade mission was to be at the
IMTEX 2017, India’s premiere
echristopher@AMTonline.org
ground level to personally experimachine tool show. Additionally,
AMT also hosted a pavilion at
IMTEX for exhibiting members.
The week prior to the show,
participants from seven AMT
member companies took part in
the trade mission, visiting 10 large
manufacturers in Pune and
Bangalore. Well-known names like
GE, Mahindra, Cummins, Toyota,
and Dana-Spicer were among
those on the agenda. Everyone
walked away with new high-level
contacts, local insight, and
optimism about their strategies for
India moving forward. Hats off to
the Chennai Tech Centre team!
The trade mission participants
had a lot to say reflecting on their
time on the road:
“An AMT trade mission is a
great way to get face to face with
senior executives looking for ways to Participants from seven AMT member companies took part in the trade mission, visiting 10 large manufacturers in Pune and Bangalore.
improve their productivity. The

Hit the starting line at the next M4M 5K
Get active while supporting a
good cause at the Miles 4 Manufacturing 5K race, once again
coming to the MFG Meeting.
Proceeds from the event are
donated to programs benefiting
the development of the future
manufacturing workforce.
Scheduled for March 23, at
6:15 a.m., this exciting early
morning event will take a scenic
route through the Omni Amelia
Island Plantation Resort.
Funds raised will go to
purchase a MakerGear 3D printer

for Imperial Estates Elementary
School, a Brevard County public
school on Florida’s Space Coast in
Titusville, Fla.
The 3D printer will be used to
enhance the STEM and Makerspace program in the school’s
media center. Students and
teachers in the Imperial Estates
STEM program enjoy the support
of industry mentors from NASA,
RUAG Space, OneWeb, Kamm
Consulting Group and other local
aerospace companies.
Since its debut at IMTS 2014,

the M4M 5K has been run at
meetings around the country and
has raised more than $45,000 to
assist middle school, high school
and technical college programs
that promote careers in manufacturing. IMTS covers all of the costs
associated with staging and
promoting M4M, so 100 percent of
all sponsor revenue and every
dollar of runner registration
fees go directly to the schools. Your
support, whether as a sponsor,
runner or a contributing spectator,
directly benefits the students!

Page 8

AMT NEWS/February 2017

By Willie Eichele
President
The Motch & Eichele
Company, LLC

As a small distributor I had
little clue what I was signing up
for back in 2014 when I registered
for my first MFG Meeting. I’m not
going to lie, you start adding up
the cost of flights, hotels, registration and time away from the grind
and on the surface it could appear
darn near impossible to justify. I
couldn’t have been more wrong!
For the benefit of someone that
hasn’t attended or someone that is
considering attending in March
2017 but is looking for justification, let me share the method to
my madness to help you decide if
it’s worth it for your company.
I like to break down these
events into three categories when
determining value: Speaker
relevancy, networking opportunities and opportunities to
strengthen existing relationships.
Speaker Relevancy: AMT
spends a tremendous amount of
time and money selecting
speakers that are either relevant
to our day-to-day operational
challenges or enlightening with
industry trend and technology
information. In both cases topics
are covered that make you
continue to evaluate how you do
things and if it's indeed the best
and most efficient way. Whether
it's implementing new sales
incentive strategies or pursuing a
new upcoming technology, we
have benefited firsthand from
what we learned from MFG
Meeting speakers.
Networking: I don’t know
where to start on this one because

The MFG Meeting:
Why you have
to be there
the opportunities for real networking are endless. Of course,
there are many different types of
opportunities, ones that can
affect immediate business, ones
where seeds are planted for future
opportunities and ones that
provide the opportunity and
environment to resolve open
issues. I can honestly say all of the
above have been a reality from
attending.
Existing Relationships:
Based on event venues, where
could you possibly find a better
place to relax and spend time
with your current business
colleagues? We all know how
tough it is to get to know the
people we work with every day
while in the heat of the battle. It
may be hard to associate a true
value to this one but I think we
can all agree it’s time well spent.
So, with MFG 2017 right
around the corner on March 22-25
in Amelia Island, Fla., it’s time to
decide how attending can help
your business. With speakers
covering the future of manufacturing, competitive technologies,
additive manufacturing and the
state of the ever-so-important oil
industry, I’d say there’s never been
a better time to consider jumping
on board. That’s before John
Walker gives his economic
outlook and the endless opportunities for networking with your
industry peers.
Hope to see you in Florida!
Register for the MFG Meeting at
www.MFGmeeting.com.

THE

TheMFGmeeting.com
MARCH
22–25, 2017 AMELIA ISLAND, FLORIDA

Register Today

TheMFGmeeting.com

Passengers – Art becomes life
During my holiday
Hollywood does have to justify
spacecraft that is
downtime, one of my
the price of admission.
showing all the signs
favorite things to do is
I hope that the story behind
of trouble, without
catch the latest Hollyspecifically leading the the story in this film is not lost on
wood box office hits
characters to the exact the American public. Any sense of
with my wife and “kids.”
source of the problem. apprehension about the potential
I say “kids” because
for automation, AI, AR, etc., to
The limits of AI still
they are both adults
take jobs away from people in the
abound in the future
with careers of their
near term or the very long term
(in the context of this
own now, but more on
can be eased by watching films
film;
how
else
could
Greg Jones
that later.
like this and the message they
V.P. - Smartforce Development Hollywood justify the
One of the movies
convey that in the future, we will
price you’ve paid for
that we went to see, Passengers in
continue to need skilled labor in
your movie ticket?), but we’re
3D, was a favorite of ours this
the form of mechanics, welders,
working on AI in real life in the
holiday season. Not only because
machinists, technicians, engipresent day in many forms with
our family loves
neers, etc.
human machine
sci-fi and space
Go see Passengers (or, by the
interaction,
In the future, we will continue to
themed movies, but need skilled labor in the form of
time you read this, check it out on
collaborative
the film included a mechanics, welders, machinists,
DVD or Netflix) and let me know
robotics, etc., and
terrific story line,
what you think: gjones@AMTonthat
future
looks
technicians, engineers, etc.
cinematography
bright and exciting. line.org.
and acting, and had
Footnote: the movie poster
Spoiler alert: I
an emphasis on skilled, knowlfor Passengers includes a graphic
was a bit disappointed with the
edgeable workers and the
for 3 dots, 3 dashes, 3 dots, Morse
directors because none of the
technology that will be available
code for S.O.S. We’re not at that
“fixes” in the film involved 3D
to those workers in the future.
critical point in
printing anyIf you haven’t seen the movie
U.S. manufacthing. But I
yet, please read on. I promise I’ve
turing workdigress.
done my best to not give away the
force developIn a discusplot.
ment yet, but we
sion with my wife
The key protagonist, played
still need more
and kids after the
by Chris Pratt, is a “mechanic”
young people
movie, my son
who, by traveling in a state of
seeking an
(an IT network
hibernation, is taking a 100+ year
education in
engineer) and
journey to a new Earth colony.
STEM and careers in
daughter (a technical software
He's traveling to a planet called
manufacturing.
specialist) quickly came to the
Homestead II because his skills
conclusion that all of the probFor more frequent updates about
are valued there, and because the
lems could have been solved much
Smartforce Development, follow me
Earth has become too overpopumore rapidly if they’d just used
lated. In fact, even though the
on Twitter @GregoryAJones.
more engineers, but again,
company that is providing
colonization services has classes
Manufacturers have confidence that when they are working
of travel for their passengers —
with a Certified Manufacturing Technology Sales Engineer
think platinum, gold and silver for
(CMTSE), they are working with sales professionals who are
you frequent flyers — the skilled
the most knowledgeable and experienced in the industry
laborers are entitled to a discount
and who can have a positive impact on their bottom line.
on their travel because they are so
highly prized and well regarded.
Now, more than ever, qualified industry sales professionals
This is a Hollywood movie
should take this opportunity to become a CMTSE.
after all, so suffice it to say that
For more information and to register today, visit
something went wrong and the
www.CMTSE.org.
Pratt character had to put his
mechanical skills into action. And
this is what really got my
attention.
In my role in Smartforce
Development, I am also staff
liaison to the AMT Global Service
Committee. One initiative that
we’re working on is investigating
the potential for augmented
reality in education and training
for field service technicians and in
providing real-time documentation at the point of install/
maintenance/repair. It was
interesting to see Hollywood’s
futuristic version of AR in the
movie.
Along the way, the movie’s
characters engage with artificial
intelligence in the form of an
Android, of course, and with a